Diaspora money remitted into the country significantly dropped in September, the second drop in the year as compared to earlier months. According to Central Bank of Kenya reports, in September 2012, remittances to Kenya amounted to US$ 92.5 million (KES 7.9 billion) 2.4% lower than US$ 94.8 million (KES 8.06 billion) recorded in August 2012. CBK attributed the decline to a reduction of inflows from the European region.

In July 2012, remittances to Kenya amounted to US$ 92.7 million (KES 7.88 billion), or 6.8% lower than US$ 99.5 million (KES 8.46 billion) in June 2012. CBK attributed the decline as reflection decline in inflows from North America and Europe. In the year to July 2012, total remittances inflows stood at US$ 1,101 million, 42.86% higher than the total remittances in the year to July 2011 which stood at US$ 770 million (KES 65.45 billion).

The 12-month cumulative average remittance inflow has however sustained an upward trend from the second half of 2010, with the average remittances inflow in the year to September 2012 at US$ 93.6 million, up from US$ 68.7 million recorded in the year to September 2011.

The pick-up in the 12-month cumulative average flow reflects the sharp rise to a peak of US$ 106.4 million in March 2012. The remittances monthly inflows have stabilized within the narrower range of US$ 92.5- 101 million between April and September 2012, well above the US$68.1-84.8 range in a similar period in 2011.

The factors explaining the relative increase in remittances according to CBK include Improved data collection techniques due to proper classification of remittances data by commercial banks.

Increased competition among money transfer service providers that has reduced transaction charges. Mobile phone companies’ partnership with international money transfer players such as Western Union has made it cheaper and more convenient to send money back home.

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